You have some shares that were from the demutualisation of an insurance company. I have compiled a list of shares that I frequently get asked what the original cost of the share was. Below is a list of those shares:-

CompanyDateCost Base
National Mutual/AXA7/11/96$1.17
Colonial Mutual (now CBA)19/5/97$3.31
TAB19/6/97$2.05
SGIO31/3/94$1.00
Bankwest2/2/96$2.05
NRMA8/8/00$2.75

Bear in mind that some of these companies have now have been taken over, and you will now own shares in the new company.

The cost base remains the same, if you owned 1000 shares in Colonial Mutual, the cost base of $3310 will apply the the sale price of your Commonwealth Bank Shares (CBA).

27 Comments

  1. Thanks for your CG answer. Other issue… Only DRP shares involved .. So tax is gain/ loss on the re- invested share amount for that year… Each miniscule change tajen into account as reorted 1 quarterly by NRMA, or, an aggregate from the beginning and end of tax year?

  2. Thanks for clear information. Does capital gain calculation on dividend re- investment nrma shares, upon sale, have to be annual gain or loss, on each new package of re- invested shares, or is it a gain or loss at point of sale from initial grant. Wikipedia ? ato site says DRP shares are CG wise treated dufferently to shares purchsed.

    Does your newsletter hace a price.. Or free? Rgds Patricia

    1. Author

      Patricia

      Dividend re-investments (DRP) are treated as a share purchase, so the cost price of those shares need to be taken into account when you sell the shares.
      Say, you sold 1100 shares and 1000 shares were from the original purchase and then you received 10 DRPs of 10 shares you will need to find out the price of all 1100 shares.
      It will be the sale price of 1100 shares less the purchase prices of 1100 shares, the balance being the capital gain or loss.

      The newsletter is free.

  3. We were gifted shares from Colonial mutual.
    It was ages ago, possibly pre 1985
    Now wish to sell but cannot find details.
    Do you know where I could get details of these gifted shares

    1. Author

      Can you ask the person who gifted you the shares? That would be the first place I would start.

      1. It was Colonial Mutual, which no longer exists.
        Tried that

        1. Author

          Ok, I assume that the shares were given to you through the demutalisation of Colonial Mutual and now you own CBA shares, in that case the original Colonial Mutual shares had a value of $3.31.

          For every 7 shares you had with CBA on the 14th June 2000 you would have had 20 Colonial Mutual shares. How many shares did you have in CBA in 2000, is it the same balance that you have now?

        2. When did CMLA demutualise? After acquisition by a privatised CBA?

          My understanding of demutualisation is that customers, policy holders are comsidered ‘owners’ of the mutual so are offered money or shares when demutualisation tajes place ( aka NRMA).

  4. I held shares with National Mutual Holdings Limited and not sure what ever happened to them. How do I trace these? Many thanks.

  5. Hi
    Any advice on who to chase up about how much a relative had invested with Colonial Mutual? I need to find out how much was invested so I can do the maths on how many shares they had with CBA after the acquisition in 2000. Trying to sell these shares I’ve inherited and pay the Capitol Gains Tax. To do this though I need the amount AND purchase price of the shares between Colonial and CBA

    1. Author

      Ed, in a previous comment, mentioned this, Colonial Mutual shareholders were provided with 7 CBA shares for each 20 Colonial Mutual shares that they held.

      (This may be of interest to somebody in the future.)

      I have recently needed to find the cost base for CBA shares (how much each CBA share was worth when they exchanged my Colonial Mutual shares for CBA shares in 2000). When CBA acquired Colonial Mutual, on 13 June 2000, each share was assigned a value of $26.39. Colonial Mutual shareholders were provided with 7 CBA shares for each 20 Colonial Mutual shares that they held.

      Page 65 of the 2000 Annual Report:
      http://www.commbank.com.au/about-us/shareholders/pdfs/annual-reports/2000_Annual_report_financial_statements_1MB.pdf

  6. do you have a source document (eg company guidance / ATO ruling) for the Colonial demutualisation value of 3.31? I’m struggling to find one online these days

    1. Author

      Sorry I don’t, I had the information back when I made the original post but that was some years ago.

  7. Is there any chance you would know the price of AMP shares when it demutualise ? Thanks Bruce

    1. Author

      The price of the shares at denationalisation was $10.43, since then there has been the Henderson demerger and 3 share capital returns. The cost base of the original shares at the moment is $6.19.

  8. can you help me find shares that i believe i have with the old National Mutual Life Assoc. Unfortunetly I have not kept paper work as life has changed and Ive moved several times. So how and who do I contact to try get any information so that my curiosity is at ease.

    Many thanks

    Toni

  9. From CGT Reporter:
    Reconstruction – 1/07/96 – National Mutual Life Association corporatised into National Mutual Holdings (now Axa).

    Public Offer – 8/10/96 – Listed on 8/10/96 as National Mutual Holdings Ltd after an IPO at $1.50 per share.

    Formation – 8/10/96 – Policyholders got ‘free, demutualisation’ shares in NMH with an ATO advised CGT value of $1.14 ea.

    1. Thank you for your information, as it is from the CGT reporter it would be accurate.

  10. I think David is right. National Mutual/AXA shares’s cost base is $1.14 and the deemed acquisition date is 08/10/1996. Cheers.

    1. Thanks David for your input, will look into it.

      Geoff

  11. I have just researched my cheque book back in 1996 and the cost of purchasing additional shares in National Mutual (later AXA) on 8 October 1996 was $1.50 each other than the free issued shares with a cost base of $1.17.

    Cheers John.

  12. Hi,
    (This may be of interest to somebody in the future.)

    I have recently needed to find the cost base for CBA shares (how much each CBA share was worth when they exchanged my Colonial Mutual shares for CBA shares in 2000). When CBA acquired Colonial Mutual, on 13 June 2000, each share was assigned a value of $26.39. Colonial Mutual shareholders were provided with 7 CBA shares for each 20 Colonial Mutual shares that they held.

    Page 65 of the 2000 Annual Report:
    http://www.commbank.com.au/about-us/shareholders/pdfs/annual-reports/2000_Annual_report_financial_statements_1MB.pdf

    Regards

    1. Thank you Ed, I am sure this will be helpful.

  13. Dear Sir,

    What was the IPO price of National Mutual in 1996 that was taken over by AXA later.

    I think it was either $1.60 or $1.80

    regards

  14. The AXA entry may not be correct. My shares were acquired October 3 and 4 1996, not November 7. Also other sites list the price as $1.14 but strangely have a date of August 1995. Rather perplexing for those of us dealing with the AMP buyout of AXA this year.

    But thanks for the site.

  15. Hi
    Your figure for NRMA may be a bit misleading to readers as the cost base you have is for the optional additional shares which could be purchased at time of the allocation of original NRMA shares. The original shares distributed at demutalisation have a cost base of $1.78 and a date of issue of 19/6/2000.
    Regards
    Peter

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